People – Process – Data – Domain Knowledge – Technology – Analytics – Plan
The above 7 items is all you need. But I would like to start off by saying that:
“Every Business is unique! Every business has its own leadership, Culture, Products, Pricing, Marketing, Customers, Technology, Processes, Analytics”.
It therefore makes sense to acknowledge that every business has it’s own needs, it’s own business questions that need to be answered at any specific point in time. Questions such as Which of our customers are buying product A, How can we increase our number of customers by 20%, How do most of our customers buy from us, What is the customer process for buying our products, When can we expect our customers to change their buying behaviour, How can we reduce churn?
Your data can answer all these questions. You may have several sources of data such as
- Descriptive – demographic, geographic,
- Attitudinal – preferences, needs,
- Interaction – Email, web, call centres
- Behavioural – transactions, payment history, usage
- Website Activity – Number of customers, Number of conversions,
- Social Media – Positive Sentiments versus Negative Sentiments
To influence your customer behaviour, that is, to get customers to do what you want them to do, your business needs the right People, the right Processes and the right Plan in place. Talking to your business domain experts and then taking the relevant data necessary to answer your business question through the use of technology and tools such as SPSS, SAS, R, etc businesses can uncover key insights that will greatly assist them with proactive decision making and business strategy.
Now, what do I mean by the right People? The right people refers to the right employees and the right customers. Having the right employees, means that your business must have the right talent who have enough experience in the industry and with your products as well as the right analytic skill set to better understand the data and how to derive business insights from it.
Having the right customers, means that your business understands exactly who are their target customers, what they like, what they dislike, what they perceive as being most important and what are their current needs.
Having the Right Processes in place, is all about having processes in place at each of the customer touch points where by your business can engage or incentivise your customers to buy your product or service and integrate all the data from a single customer as a single view. This is where the power of the analytics lie. By integrating all you know about your customers into one file, you are able to determine relationships between different customer activities that allow you to make offers or to the right customer, at the right time with the right product offer using the right channel.
What about the Right Plan. How does your ensure that they have the Right Plan? I wold say, it all about the 7 items that your business needs to consider and taking each of them into account, your analyst will have enough information to decide how best to answer the business questions. Based on the business question, your analyst will identify the best statistical techniques and tools that need to be used to provide your business with accurate and reliable results to strategy and proactive decide on what is the best approach to successfully achieve the business goal.
Please share any questions you may have at this point…I will follow on from here next time with some common business questions and the statistical technique and approach that may be used.